A brief in line update from this laundry and textile services company. They say their turnover is up 3% underlying with improved margins and strong cash flow as usual. However after the effects of currencies their reported turnover is expected to be down 3% in the period although they say that reported operating profits are expected to be flat in the period thanks to the margin improvement. Not a lot to add but the Company said :
"The Board continues to expect to achieve a year of good underlying progress in line with its previous expectations."
You can read the full statement by clicking the highlighted link above.
This leaves the shares looking fairly valued on around 15x with a yield of just over 3% so not too much to get excited about either in the business or with the share price, although having said that Mr. Market has marked them up by 2% or so first thing. You can read my previous pieces on it here, which give more background details, a previous half year update and why boring can nevertheless be brilliant for your portfolio (see chart below) .
However, it is worth remembering come the next recession that this one does have some cyclicality given its exposure to hotels (via linen services) and manufacturers (via work wear) which meant it did give back a lot of its gains in the last down turn in 2008.